Greece has reportedly decided to tap money markets with a new 5-year issue worth between 2-4 billion euros as early as today or tomorrow. Press reports have indicated that the issue will be under English law while the coupon is seen in the range of 2.4%.

Reportedly, the issue could be through new money and a partial swap of an existing 4 billion euros bond issued back in 2014 and due April 2019.

Daily Kathimerini reported that Greece is banking on over 2 billion euros ‘captive’ funds to at least partially fill the books of the planned inaugural issue, namely 850 million euros in domestic pension funds assets already invested in government bonds and some 1.5 billion euros from domestic banks, of which 1 billion euros has l already been invested in the April-2019 bond plus over 0.5 billion euros headroom to ECB’s limits for banks’ aggregate sovereign exposure.

Analysts argued that there are some good reasons for Athens’ return to markets this week, so as to both capitalise on current positive sentiment and also avoid any risks lurking in the near-future. Also, the planned IMF board meeting on July 20 is likely to highlight once more that the country’s debt is unsustainable and only generous debt relief measures could bring it on a positive path.